Show Notes
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#globalcurrentaccountimbalances #borrowerandspenderoflastresort #foreigncurrencyreserveaccumulation #capitalflowsandfinancialcrises #domesticcurrencyborrowingforemergingeconomies #FixingGlobalFinance
Fixing Global Finance is a work of economic analysis by Martin Wolf, the Financial Times chief economics commentator, published as part of the Forum on Constructive Capitalism series. Written in the shadow of the 2007 to 2008 financial crisis, the book examines why the global financial system repeatedly generates large imbalances, sudden reversals of capital flows, currency crises, banking stress, and unsustainable borrowing. Its central concern is not only Wall Street risk taking, but the wider international pattern in which emerging economies accumulate reserves and export savings while the United States absorbs much of that surplus as the borrower and spender of last resort. Wolf connects balance of payments data, exchange rate policy, capital mobility, and domestic credit expansion into a single explanation of financial fragility. The book is aimed at readers who want a policy oriented account of global finance, especially economists, investors, public officials, and informed general readers comfortable with macroeconomic reasoning.